There are more job losses to come at Microsoft as it is looking to cut up to 3,000 sales employees of its 121,000-employee workforce. The figure amounts to 10 percent of the sales division and about three quarters of the layoffs will take place outside the United States.
A company spokesperson told CNBC:
Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.
Windows Central reported on an internal memo and sources have circulated around a reorganization in the sales department down to an enterprise unit and one for mid-size and smaller businesses.
Microsoft is looking to focus development on specialist salespeople in different verticals and insists that this move is not a cost-cutting measure — another bad sign for frontline and call center employees and a worse sign for consumer PCs and phones. The tech giant saw a 93 percent jump in revenues from its Azure cloud computing business as consumer-side computing sales stall. Its gaming unit has gone through modest growth.
Going through with the elimination process, Microsoft will have experienced a net loss of 10,000 positions from its peak of 128,000 in 2014.